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Interest rates
Rachel Reeves warns Bank of England against changing the way it pays interest on reserve funds
Rachel Reeves, the shadow chancellor of England, has warned of "the dangers" of changing the way the Bank of England pays commercial lenders interest on their deposits. She has thrown cold water on a proposal that some economists had said…
Tax increases are inevitable because of the losses from quantitative easement
Goldman Sachs warned that tax increases are "inevitable", as the legacy of quantitative ease from the Bank of England will be felt after the elections.
The American Investment Bank has stated that the losses from the quantitative easing…
European Central Bank reduces interest rates for the first time in five years
The European Central Bank cut interest rates, for the first in nearly five years. However, future cuts will depend on whether or not price pressures continue to ease.
The quarter-point reduction to 3.75 percent on Thursday, which was not…
Bank of England deputy says that a UK interest rate reduction is “possible” this summer
The Bank of England's departing deputy governor hinted on Monday that UK interest rates may be reduced this summer. This would add to the expectation of a first cut in borrowing costs as early as next month.
Ben Broadbent said the Bank's…
Bank of England announces summer rate cut while keeping rates at 5.25%
The Bank of England has indicated that it will cut rates if the inflation rate remains low this summer, even though it is keeping borrowing costs at their highest level in 16 years of 5.25 percent.
Andrew Bailey, Governor, said on…
FTSE 100 closes on record high after sterling falls
The FTSE 100 reached a new high on Monday, as the rising expectation of UK interest rate reductions weakened sterling. This also boosted London corporate valuations.
The blue-chip index in Britain rose by 1.6 percent to 8,023.9,…
Bank of England raises alarm over private equity sector
Bank of England warns that mounting pressure on the £6.5 trillion (£6.5 billion) private equity sector could lead to a crunch, which would cause banks to suffer large losses and trigger a crisis in the real economy.
Regulators are…
Thames Water bondholder warns that creditor losses may deter investment to the UK
Nationalising Thames Water will discourage investment in UK infrastructure. This is the warning of a major bondholder.
Royal London Asset Management's senior fund manager said that taking the heavily-indebted water company under public…
Gold reaches record high of 2,353 dollars on conflict and rate-cut hopes
Gold prices hit a record high of $2,353 an ounce Monday morning, before slipping back to around $2,336. Geopolitical tensions and central bank purchases, as well as the looming rate cuts, fueled demand for gold.
Interest rate swaps…
Bank of England: Delaying interest rate reductions will weaken the UK economy
A report warns that the UK economy is headed for a slow recovery after the recession, and the Bank of England may compound this weakness by maintaining interest rates at an unsustainable level for too long.
KPMG predicts that the economy…
Federal Reserve: Too early to reduce interest rates
Santander UK's boss warned that Britain is becoming an unattractive investment destination due to high taxes, amid increasing pressure on the Chancellor.
Mike Regnier told the MPs that Santander UK's chief executive, Mike Regnier, said…
Fund managers most optimistic about global growth in years
The outlook for the global economic climate is the most positive it has been in the past two years. Most fund managers believe central banks can bring inflation to the target rate without triggering recession.
Bank of America’s latest…
Top central bank warns that interest rates will need to remain high for many years
The Bank for International Settlements has stated that central banks around the world are forced to maintain high interest rates for many years as they fight wage demands, wars and trade disputes.
The institution often known as central…
In a high-tax Britain, the middle-class favorites are first to go.
Harvey Jones is not likely to be able to provide you with a new, upscale kitchen for a long time. The Body Shop will no longer be the best place to buy ethically sourced creams. Burberry issued a profit warning while John Lewis closed…
The cost of borrowing is causing global debt to reach record levels
The global debt reached a new record of $313 trillion, or £248 trillion. This is due to higher interest rates that drive up borrowing costs.
According to the Institute for International Finance (IIF), borrowers took on $15 trillion more…
What does the UK economy mean in terms of recession?
Last week, official figures revealed that the UK had entered a "technical recession" in the second half last year. The drop in Gross Domestic Product (GDP) was 0.3 percent in the fourth quarter after a 0.1 percent fall in the third.…
Savings of over a trillion pounds is held in low-interest savings accounts
More than £1 trillion of the nation's savings is sitting in accounts earning less than 2 per cent, while the base interest rate is 5.25 per cent, according to an analysis of Bank of England credit data.
The figures, which include money…
Companies say that high energy prices will increase their prices
Over 80 percent of British firms expect to raise the prices of their products and services in the next two-year period, raising concerns that inflation won't fall back to Bank of England target.
PwC conducted a survey on companies and…